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Hi Ripperg, all the new features are due out this year and they cannot do that until the new app is launched. Mode will be one of the only apps in the UK to make payments with crypto. I personally think Mode will be a different entity this time next year. I accept a few mistakes have been made but at the end of the day which company gets everything right? I cannot stress this enough. Mode will not have expenses similar to last year.
Where can I find this broker note please?
@moody, you say the new app will start beta testing soon. Is that a guess or are you involved?
According to mode broker note we should see 1.20£ on the end of year , I will consider myself lucky to see my 20k back for my 59k shares ?? and I will be gone they just spend to much money 1.3 milion for advertising , what advertising on Twitter hahha
This is type of business is not built in 5 minutes Colin! I believe Modes costs are almost half of 2020-2021. We now have a new app built which should go through beta phase very soon. I would like to think the additional features will really help with much better revenue.
I’m sure MODE is not receiving enough from the affiliate scheme, I purchased a pair of trainers admittedly in the sale, spent £40 and received 38p to be converted to satoshis.
I assume the split varies between MODE and the consumer who gets what but with an increasing salary bill, the requirement to advertise the company properly, not forgetting income needed to fund the loss that was announced last week.
Still struggling to understand how this all adds up.
Fairly confident that Mode will be successful in the long term. This requires a long term investment as the company is still early stage and will need time to grow. It is in an exciting Fintech sector and is well regulated with the FCA.
They are making steady progress since listed and now have 4 revenue earning streams:
- Bitcoin trading (volatility in price means more trading which is positive for Mode and more coins may be added this year)
- Payment integration with THG brands
- Bitcoin payroll
- Affiliate rewards cashback (200+ brands now)
Recently funded for the next phase in growth and with Rita as the CEO - I have confidence she is able to steer Mode in the right direction whilst keeping an eye on company expenditure.
The company's market cap currently is very cheap and I will be adding when I have additional funds. A lot of the company shares are held tightly and this gives me additional confidence.
ATB,
JS
Everyone’s opinion should be heard but seriously can anyone see this lot pulling the company through because I can’t. They’ve balls it up during a bull market, we are now in a bear market with a potential recession looming, they’ll blame everyone and everything except themselves.
December was the greatest increase to users for Mode in 2021. The entire month they sacrificed trading fees (main source of revenue) to entice downloads. Which is why revenues were low, but still better than forecasted. Getting 0-X amount of users is extremely difficult to begin with. Once you have a certain level of users, it becomes cheaper and easier to continue to grow users as word of mouth begins to have a snowball effect.
If you listen to the most recent Science and Technology parliamentary meeting a few days ago about blockchain (which the NED of Mode David Shier was a speaker) you would see that the no.1 answer to parliament's question 'what you would like to see the UK do to help with the future of blockchain' was Clear regulatory compliance to help and protect the consumer. Which he also went onto explain that Mode is one of few companies to follow.
Regulatory compliance in this space is about to get VERY tough on all companies not in line. A very big bank springs to mind who offer crypto services and are struggling to make the list. A lot of customers are about to shift and look for who is safest to use. There has already been a crackdown on who can and cannot advertise on social media - Mode can.
Say what you want, but Mode are sensible with spending now and have made changes to their business plan to adapt to the current market. Time will tell.
What good is having more users if you have to pay more in advertising costs than they bring in, along with the astronomical admin expenses? Its like paying £2 for a user who then gives you £1 back. The app, read the reviews, they are awful. Cash burn is high and while they will not need a raise in the immediate future if they carry on the cash burn like they are now another raise will be due and at what price? We keep hearing about the FCA registration and EMI licence but where has that actually got MODE so far?
The market doesn't lie but maybe you're right, they are all missing something on this company who have over doubled their losses in the last year.....
TH Gambler, how can that valuation be right? That would mean that the cash level - which is the same as the MC is fair value. What about the App that they have spent millions on? What about the users who they have which are the no.1 Metric? What about the licenses they have and FCA work?
Come on.
zpr.io/NnjZBHSgaATT
In 2 months, we’ve almost doubled the size of our merchant list - with more huge names being added every week ??
So back of a fag packet maths shows Mode:
Spent an extra £5.9M on Admin costs
Spent and extra £1.2M on advertising
To make an extra £850k in revenue from the year before.
SP = 5.97 is about right given the above.
Mail from mode just received saying 200+ Brands !
(Alliance News) - Mode Global Holdings PLC said on Tuesday its loss widened its in 2021 despite significant growth in revenue and its user base, as administrative costs put a damper on otherwise "pleasing" results.
Shares in the bitcoin banking app were down 13% at 7.16 pence on Tuesday morning in London.
Mode Global reported annual revenue has jumped to GBP1.3 million in 2021 from GBP450,000 the previous year as its user base more than tripled over the 12-month period. This, the company said, was driven by significant year-on-year growth in bitcoin trading.
However, this figure was dampened by a significant surge in administrative costs. The costs rocketed to GBP9.4 million from GBP3.5 million the previous year as a result of higher people costs and share option expenses.
Advertising spend also increased, rising to GBP1.4 million in the year from just GBP188,000 the year prior. Mode Global said the increased spend was done to drive growth in revenue.
Mode Global's pretax loss widened to GBP9.2 million from GBP3.9 million.
Chair Jonathan Rowland said: "These results are very pleasing. The focus in 2021 was on product development and growth. The delivery of these ambitious growth plans did see operating costs increase in 2021
"However, the revenue increases we are reporting are a clear indicator that our proposition is a compelling one. In addition, our successful oversubscribed convertible loan also shows that despite recent market volatility in crypto and tech, Mode continues to attract strong interest from the investor community."
By Heather Rydings; heatherrydings@alliancenews.com
Mode has received irrevocable commitments from new and existing investors to subscribe for £1,935,000 of convertible loan notes. The loan notes, which carry a coupon of 8%, are convertible into Mode's Ordinary Shares.
Mode CEO comments: "2021 was a big year for Mode. Our aim was to grow our user base and give them the products they want. Put simply, we achieved what we set out to do.
Mode is a rarity on the LSE - a crypto-driven fintech which has obtained regulatory oversight via EMI and FCA registration. Those accreditations demonstrate that we are leading the way in the UK's digital asset industry. The prudent and sustainable approach we have adopted from day one will also help the firm navigate current market volatility, thanks to our strong risk management framework. Clearly 2021 has been a year of innovation, development and growth and we will continue to build on this momentum in 2022."
what there not to like about mode...
Maybe, but if you look at any other company in the crypto / fintech area they are all 80-90% down. There is very little volume / liquidity in the markets. It is tough for almost everyone. That will change, it is just a question of when.
The most important metric as stated in the video link above is users. Users are what will make Mode survive this. Users have grown every month and they have THE lowest cost per user sign up which is great. Everyone is screwing at the advertising spend (and yes it could have been more efficiently used on UK and not US influencers), but the spend of its closest competitor (Ziglu) was £500k a month! Ziglu has not appeared in the top 200 downloads once and they spent £6m on advertising.
More users = more revenue and sticky money within the Mode system. 70% of users are using the app for purchases and trading repeatedly. Average wallet sizes and volume trading are increasing which is crucial as trading is where the main source of Modes revenue will come from. By adding more coins (very soon), Mode will attract new customers to buy new coins and rewarded in other coins through its reward system.
202 companies on the affiliate now and this will eventually grow into the 1000s. So much choice.
I am hoping that a change of sentiment in the crypto space happens soon after Mode add the new coins and it will mean that everyone who once sat on the sidelines will want to get involved in a safe, easy-to-use and risk free way.
PatG there is blood and then there is roadkill